Biotech Beat NVIDIA in 2025. Can It Do It Again? - motley-fool-money Recap
Podcast: motley-fool-money
Published: 2026-02-02
Duration: 24 minutes
Guests: Karl Thiel, Tom King
Summary
The podcast episode dives into the current challenges and opportunities in the biotech industry, focusing on earnings reviews and predictions for companies like Eli Lilly and Novo Nordisk, and the regulatory landscape affecting drug approvals.
What Happened
The episode begins with a discussion on the performance of the biotech sector, noting its impressive outperformance over NVIDIA in 2025. The hosts explore whether this trend could continue, focusing on upcoming earnings reports from major players like Eli Lilly and Novo Nordisk.
Karl Thiel highlights the ongoing 'chaos' at the FDA, which affects drug approvals. He cites a warning from Richard Pasdor about the potential breach in the firewall between political appointees and drug reviewers, raising concerns about the regulatory environment.
The conversation shifts to the practical implications of these FDA issues, especially how they might lengthen approval cycles or lead to inconsistent approvals. This creates investment risk, particularly in the gene therapy and cell therapy spaces.
The episode also examines the earnings outlook for Eli Lilly and Novo Nordisk. Both companies are heavily involved in the weight-loss drug market, which is a significant driver of their recent performance. The hosts predict a beat for Eli Lilly but are more cautious about Novo Nordisk due to recent struggles.
Twist Bioscience's recent earnings are reviewed, with Tom King noting the company's consistent revenue growth despite the broader biotech market's challenges. The discussion underscores the potential of Twist's DNA synthesis technology.
The episode wraps up by considering whether investors should adjust their expectations for biotech investments, given the current FDA landscape and market conditions. The hosts suggest a longer-term investment horizon may be prudent.
The hosts briefly discuss David Gardner's new book, 'Rule Breaker Investing: How to Pick the Best Stocks of the Future and Build Lasting Wealth,' encouraging listeners to pick up a copy for investment insights.
Key Insights
- In 2025, the biotech sector outperformed NVIDIA, driven by strong performances in the weight-loss drug market from companies like Eli Lilly and Novo Nordisk.
- Ongoing issues at the FDA, including potential breaches in the separation between political appointees and drug reviewers, are causing delays and inconsistencies in drug approvals, impacting investment risk in gene and cell therapy sectors.
- Eli Lilly is expected to exceed earnings expectations due to its significant involvement in the weight-loss drug market, while Novo Nordisk faces a more cautious outlook due to recent operational challenges.
- Twist Bioscience continues to show consistent revenue growth, leveraging its DNA synthesis technology, despite broader challenges faced by the biotech market.